Markforged has been notified by the New York Stock Exchange (NYSE) that the company is not in compliance with Rule 802.01C of the NYSE’s Listed Company Manual relating to the minimum average closing price of the company’s common stock required over a consecutive 30-day period.
The notice does not result in the immediate delisting of the company’s common stock from the NYSE, and Markforged has stated its intention to remain listed on the NYSE.
Rule 802.01C requires listed companies to achieve a minimum average closing price of 1.00 USD per share during a consecutive 30-day trading period. Markforged, whose share price is down to 0.84 USD (as of November 20, 2023), now has six months to regain compliance.
It is the second time Markforged has fallen foul of this rule, having also been notified of its noncompliance in April of this year. To regain compliance, Markforged can regain compliance at any time within the six-month cure period if, on the last trading day of any calendar month during the cure period, the common stock has a closing share price of at least $1.00 and an average closing share price of at least $1.00 over the 30 trading-day period ending on the last trading day of that month.
Markforged has said it will consider the ‘best available alternatives’ as it seeks to remain listed on the NYSE, with a reverse stock split, subject to stockholder approval, an option ‘if necessary to regain compliance.’ A reverse stock split works to consolidate the number of existing shares of stock held by shareholders into fewer shares, but only impacts a company's stock price and not its value.
The Company’s common stock will continue to be listed on the NYSE during the six-month cure period, subject to the Company’s compliance with other NYSE continued listing requirements.
Markforged has been publicly listed since July 2021, having announced its reverse merger with Special Purpose Acquisition Corp One in February of that year.
